Hello @Gerry O Thank you for reaching out to us through Microsoft Q&A platform and I really appreciate your patience in this matter!
<<Sharing the solution with broader community>>
Issue: Unable to delete recovery services vault. Error message states there is a VM in soft delete.
Solution: The backup VM, that was supposed to be in soft delete, has been finally deleted.
Observation: It was noticed that the VM was in soft deleted state for longer than 14 days and was not being displayed in the vault.
IMO, this could be one off issue where the backend system did not delete the VM in soft deleted state for more than 14 days.
@Gerry O Confirmed that he was able to delete the recovery services vault successfully this time.
Thanks once again!